Running a UAE company while living abroad

A person who lives outside the UAE can own a UAE free zone company: the UAE Government portal states that free zone companies can be fully owned by foreign investors, and zones such as IFZA state that non-residents can own and manage a company without relocating. What usually still needs someone in the UAE depends on the zone and the business: some zones require a resident manager, a residence visa involves a medical test and Emirates ID, and banks set their own requirements for signatories. Living abroad also affects tax residence, which UAE law decides separately for the company and for you.

Owning a free zone company as a non-resident

The UAE Government portal states that free zone companies can be fully owned by foreign investors. Zones publish their own position on residence:

• RAKEZ states that an owner who is a GCC national, or a partner in a commercial company of any other nationality, is not required to reside in the UAE. It also states that the owner of a professional individual establishment must carry on the activity personally, which requires UAE residence.
• IFZA states on its website that non-residents can register, own and manage a Dubai free zone company without relocating, and that a residence visa is separate from the business licence.

Ask your zone, in writing, whether its rules require any owner or officer to live in the UAE.

What usually needs a UAE resident or presence

Rules differ between zones, so treat these as examples and confirm each point with your own zone. For the visa steps, see our guide to the residence visa through your company.

Banking

Official sources do not set out a separate account-opening route for non-residents. The UAE Government portal's banking page lists the documents most commonly required to open an account, including an Emirates ID and a valid UAE residence visa, and for self-employed people a trade licence and company documents; it states that approval time depends on the bank. Each bank sets its own requirements, including whether it needs a UAE-resident signatory or an in-person meeting. Our bank account guide lists the questions to ask before you apply.

Keeping a residence visa while living abroad

If you hold a UAE residence visa but spend most of the year elsewhere, the UAE Government portal states that a residence visa is cancelled automatically if the holder lives outside the UAE for more than 180 days continuously. Its list of exceptions includes investors holding valid UAE residence visas. Golden and Green visa holders do not need a new entry permit after more than six months abroad and can enter while their residence is valid.

ICP also offers a permit to stay outside the UAE for more than six months, for residents who give a valid reason. ICP states that it is applied for from outside the UAE after 180 days abroad, that the holder must re-enter within 30 days of approval, and that it does not apply to residents of Dubai.

UAE tax residence for individuals

Cabinet Decision 85 of 2022 provides that a natural person is a UAE tax resident if any one of these applies:

1. their usual or primary place of residence and the centre of their financial and personal interests are in the UAE;
2. they were physically present in the UAE for 183 days or more within the relevant 12 consecutive months; or
3. they were physically present for 90 days or more within the relevant 12 consecutive months, are a UAE or GCC national or hold a valid UAE residence permit, and either have a permanent place of residence in the UAE or carry on an employment or business in the UAE.

The Decision also provides that, where a double taxation agreement sets its own residence conditions, the agreement applies for its purposes. Owning a UAE company does not, on its own, meet any of these tests, and your country of residence applies its own rules. Whether you are tax resident in the UAE, elsewhere, or both is a question for a licensed tax adviser in each country.

UAE tax residence for companies

Under Cabinet Decision 85 of 2022, a juridical person incorporated, formed or recognised under UAE legislation is a UAE tax resident (this does not include a branch registered by a foreign company). The FTA's Tax Resident guide adds that, for corporate tax, a company incorporated in the UAE, including in a free zone, is a Resident Person irrespective of where its effective management and control is exercised, and that a foreign company effectively managed and controlled in the UAE is also a Resident Person.

Corporate tax applies to free zone companies. The 0% rate applies only to the Qualifying Income of a Qualifying Free Zone Person that meets every condition, and the FTA's Free Zone Persons guide lists maintaining adequate substance in a free zone among those conditions. What counts as adequate substance for a company run from abroad depends on its activity; see our guide to the Qualifying Free Zone Person rules and take advice before relying on the regime.

The Tax Residency Certificate

The FTA issues Tax Residency Certificates on application through its EmaraTax portal, both for double taxation agreement purposes and for other purposes. According to the FTA's guide (TPGTR1, October 2024):

• a certificate covers a tax period or other 12-month period, and cannot cover a future period or more than 12 months;
• a newly incorporated company that has not yet filed a corporate tax return must be established for 12 months before it can apply;
• for the current period, a company can apply after three months into the period;
• a company's documents include its licence and lease agreement, certificate of incorporation, a certified copy of its memorandum of association, and the authorised signatory's name, Emirates ID and passport with proof of authorisation;
• an individual applying on the 183-day or 90-day test provides an Emirates ID and residence visa, or a passport copy with an entry and exit report.

Whether a certificate will be accepted abroad is a matter for the other country's tax authority.

Zones that list a virtual office

Some zones publish a virtual office as their lightest facility option. The licence still lists an address in the zone. The table below shows zones that list a virtual office and publish a price:

See the full IFZA vs RAKEZ comparison →

Figures are as published by each zone with the date checked; see how we verify. Our guide to free zones with no office requirement explains what flexi-desks and virtual offices include and how they affect visa quotas.

Next steps

Ask your shortlisted zones which officers must live in the UAE and which steps need you in person, and ask the banks you are considering about their signatory requirements. The free zone finder shortlists zones by office type and budget, and our guide to setting up a company in the UAE covers the full sequence. For your own tax position, speak to a licensed tax adviser in the UAE and in your country of residence.